Mortgages and refinances can be very complex but they don’t have to be! Below are the answers to some of the most common questions we hear. Don’t see your question? Please Contact Us. 

What does the mortgage Process look like?

Consultation

you begin by having a quick consultation with one of our loan experts so they can learn about your goals and motivations to help guide you in the right direction. 

Product Selection

After learning about your goals, we will provide you with different options that best suite your needs and financial situation. 

Documents, Locks, and Appraisals

Once you have selected your loan program, we will have you e-sign all of your disclosures and you will recieve a like to a portal where you can upload all your necessary documents. For any pay stubs or bank statements you can either provide us with your logins or provide the documents. Once we get all the documents we need, we will lock your rate and order your appraisal if necessary. 

Underwriting Process

With all of your documents being handled, one of our account managers will help you navigate your way through the underwriting process. During this time, we will be getting third party verifications on your behalf and preparing all of the legal documentation you will need. 

Loan Closing

Once we get the appraisal and the lender sign offs on your loan, we are ready for closing. Most of our customers opt to close their loan at their home after normal work hours which means you dont have to take off work and close at a random office. 

 

Home Purchase

How much money do I need to buy a home?

You can buy a home with as little as $0 down on a VA loan or 3% down on a conventional loan. While 20% down will still give you the lowest rate, Next Door Lending programs can get you a great rate with a low down payment.

Should I rent or buy?

Every borrowers situation is different. Our best suggestion would be to compare what you are paying for rent and see what you can potentially pay per month on a home. Most of the time, with rent rates on the rise, or clients find that they can purchase a home with a monthly payment less than their current rent needing little money down.

What can I use for my downpayment?

Most borrowers use money saved in their checking/savings accounts. Gifts from family members, money borrowed from an IRA/401K accounts and equity from a current home you are selling is also allowed.

What is included in my mortgage payment?

Principle and interest, real estate taxes, homeowners insurance, and possibly mortgage insurance. 

Mortgage Refinance

Why would I refinance?

  1. To get a lower rate than you currently have. 

  2. You are looking to shorten your term to pay off your loan quicker. 

  3. You want to get cash out on your home to pay off other debt. 

  4. Get out of paying mortgage insurance. 

  5. Combining 2 mortgages

Is the refinance process different from the purchase process?

No not really. you will need the same documentation that you need during the purchase process and you will need an appraisal as well. The goal will always be to get your loan closed as quickly as possible. 

How often can you refinance?

You can refinance as often as you want as long as you are getting a benefit from the program. 

What kind of special refinance programs do you offer?

We offer several programs that are offered by FHA, VA, and Fannie Mae / Freddie Mac:

  1. FHA Streamline – Take your existing FHA mortgage and streamline it into a lower rate and/or lower FHA mortgage premium. This program requires no appraisal, very limited documentation and a shorter underwriting process.

  2. VA Interest Rate Reduction Refinance Loan (IRRRL) – Veterans with existing VA loans can take advantage of this program to reduce their rate and/or term. No appraisal needed and the underwriting process is very brief.

  3. Home Affordable Refinance Program (HARP) – In response to the economic crisis of 2007-2009, Fannie Mae and Freddie Mac came out with the HARP Program. This allows you to refinance even if your home is underwater or has lost significant value since your original purchase. Often times you won’t need an appraisal and the underwriting guidelines are more relaxed with this program.